Shares of (JD -4.09%) fell 4.1% on Tuesday, following reports that the Chinese e-commerce leader is mulling whether to make a bid to acquire British electronics retailer Currys. The move would spark a potential bidding war with U.S.-based activist investor Elliott Advisors.

Is a bidding war brewing for Currys?

On Saturday, Currys rejected an initial $883 million acquisition offer from Elliott Management, arguing the potential cash offer “significantly undervalued” the company. Currys operates around 300 stores and employs around 10,000 people. Shares of the electronics store chain had fallen more than 50% over the past two years leading up to Elliott’s offer. Elliott subsequently stated it’s weighing whether to make a second, higher offer.

In a statement Monday, however, representatives confirmed they’re also considering whether to make a competitive acquisition offer., for its part, has struggled to drive revenue growth in recent quarters — with sales in its most recent quarter climbing only 1.7% year over year — amid fierce competition and macroeconomic uncertainty in China.

What’s next for investors?

Acquiring Curry’s would be an interesting move for, which has a market capitalization of just under $36 billion as of this writing, giving the Chinese company a notable physical store presence outside of China. Currys sells items like fridges, washing machines, computers, and other electronics across Britain, Ireland, Sweden, Norway, Denmark, and Finland.

Though JD representatives cautioned there are no guarantees it will make a formal offer, it seems the market isn’t particularly impressed by JD’s potential shift outside of its core China geography.

Steve Symington has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends The Motley Fool has a disclosure policy.

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